Self storage update: Is the industry in “stable” mode?

By Joel Nelson on October 6, 2025 in Matrix

“Stabilization” is the prevalent theme of this U.S. self storage update, as asking rates and demand trends continued to recover in August 2025.

National advertised rates rose 0.3% year-over-year, the highest growth rate since September 2022. Twenty-two of Yardi Matrix’s top 30 markets posted stronger annual rate growth in August than in July.

One key driver is a 12.6% increase of household usage. This is driven, Yardi Matrix notes, “by space needs and long-term tenants that sustain occupancy despite weak home sales and migration.” Furthermore, some markets remain overbuilt from a 2023-24 supply surge.

On the transaction front, activity and pricing are rebounding as cap rates and rents stabilize. “Competition for acquisitions is intensifying amid strong capital flows and investor interest,” according to Yardi Matrix.

Advertised rates in some markets, such as San Diego, Denver and Austin, Texas, are underperforming despite low levels of new supply. But overall, “the industry is positioned for gradual recovery and long-term growth.”

See all that’s new in our latest self storage update: demand dynamics, capital market transactions, construction activity and more. It’s all in the Yardi Matrix National Self Storage Report for September 2025.